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Nov. 15, 2006
SPANO PROPOSES 2007 BUDGET
Tax rate increase of 3.98 percent is below inflation; no increase in
fees or bus fares
County Executive Andy Spano
today released his proposed 2007 budget, describing it as a fiscally
sound plan that would protect public health and safety while keeping the
tax levy increase below the annual rate of inflation.
“We have been prudent and judicious, supporting and funding programs
that have proven to be beneficial to the public and vital to their
health and safety,” Spano said. “We have provided for mandated expenses
while at the same time aggressively pursuing programs to root out
Medicaid fraud and abuse. We will not let up on continuing to achieve
greater efficiencies. While county taxes make up 15-20 percent of the
total property tax, we are ever mindful of the increasing property taxes
our residents pay to their schools and local governments. Our goal
clearly is to provide the best services to our residents at the lowest
possible expense.”
The proposal calls for a gross 2007 budget of $1,692,337,149 and an
increase in the county property tax levy of 3.98 percent. The current
rate of inflation is 4.1 percent. This increase would have been less if
not for a decrease in mortgage tax revenues due to the slowdown in the
housing market.
The budget includes no increases in fees, permits or bus fares and no
cuts in bus service.(In April of 2007 the Bee-line system will implement
the Metro card system which will reduce the cost of bus transportation
for many riders). It also includes a 5 percent increase in funding to
all contract agencies that work with the county to provide cultural and
human service programs.
The effect of Spano’s proposal will ultimately vary from community to
community, due to a state
formula that address the way local governments assess property and
different trends in market values.
SPENDING
The gross budget appears as an increase of $152.2 million, but $103
million of that is due to accounting changes mandated by the New York
State Comptroller. For the first time (in both revenue and expense
lines) the budget must include that portion of the sales tax that is
received by the county, but then distributed to the county’s schools,
towns, villages and the cities of Rye and Peekskill. Without this
mandated addition to the budget, the gross budget would have been shown
as $1,589,337,149, an increase of $49.2 million, or just 3.2 percent.
Spano projects that net Social Services expenses next year will be down
$7.5 million, the second year in a row there has been a decrease. The
decrease comes despite the fact that it provides for 41 new positions in
the Child Welfare Unit to meet the potential recommendations of the
Child Welfare Workload Study.
Medicaid, the program that pays for health care for the poor, is
projected to cost taxpayers $189.8 million next year. Another
state-mandated program, Children with Special Needs (Early Intervention
and Pre-K) will grow to $139.2 million in 2007, up from $130.9 million
in 2006. About half of these costs are reimbursed by the federal and
state governments.
Other expenditures include an increase of 20 percent in the costs of
getting electric power from the New York Power Authority and a 12
percent increase in water costs from New York City’s water system; and
$5.1 million for the implementation of the federal Help America Vote Act
(HAVA) and the state-mandated centralization of the elections process.
In addition, the county anticipates that the costs of court-ordered
property tax refunds (known as certioraris) will increase to $10 million
next year, from $6 million this year.
The 2007 proposed budget institutionalizes two important public health
programs: Teen Aware to prevent teen pregnancy and Healthy Beginnings
which provides pre-natal home visits to high-risk populations. In
addition, the budget would continue to fund Spano’s Health Care
Disparities Initiative.
OTHER HIGHLIGHTS OF THE BUDGET
- A 5 percent increase in
county payments to contract agencies, which represents the first
increase in five years for these non-profit groups that provide
important services and enhance the arts.
- Additional subsidies for
day care, reducing the parent co-payment to 15 percent (which was
reduced last year to 20 percent) and an additional $500,000 in day
care scholarships.
- Continuation of the
county’s ongoing effort to replace its bus fleet with fuel
-efficient and hybrid vehicles.
- Continuation of support for
the Westchester Medical Center, amounting to $15.3 million.
- New positions in the
departments of Public Safety, Emergency Services, Probation and the
District Attorney’s Office for investigations, law enforcement,
overall security and emergency preparedness.
REVENUES
The county budget projects an increase of 3.5 percent in sales tax
revenue from 2006, or $467.5 million. (This includes the $103 million
pass through to local governments and school districts, a bookkeeping
change.)
However there is a 13.8 percent decrease, or $4 million, in mortgage tax
revenues due to the slowing down of the housing market in Westchester.
The tax levy increase would raise $517.9 million in revenues.
Taxpayers benefit from the continued growth in the county’s surplus from
previous years. For 2007, it is up $4.3 million, to $43.6 million.
(Under county fiscal practices, the audited fund balance from 2005 is
used in 2007.)
The county anticipates $414.7 million in state and federal aid in 2007,
no change from 2006.
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